Standard Chartered anticipates growth in tokenizing physical assets beyond stablecoins.

Standard Chartered anticipates that the tokenization of real-world assets (RWAs) beyond stablecoins could experience substantial growth over the next five years, propelled by advancements in regulation and an increased emphasis on impactful use cases, as detailed in a report released on June 20 and shared with CryptoSlate.

The bank’s report, titled “RWA Tokenisation — A Growth Opportunity,” pointed out that while stablecoins continue to be the primary catalyst for blockchain-based RWAs, initiatives aimed at tokenizing non-stablecoin assets such as private credit, securitized debt, private equity, and commodities have lagged, amounting to approximately $2 billion.

The report indicated that this disparity is primarily due to inconsistent regulations and initial projects focusing on areas with limited benefits from blockchain integration.

Focus shifting beyond stablecoins

Geoffrey Kendrick, head of digital assets research at Standard Chartered, noted that the sector’s significant dependence on stablecoins has overshadowed other tokenization opportunities that could revolutionize illiquid and hard-to-access markets.

Kendrick stated:

“Non-stablecoin RWA tokenization has lagged for a number of reasons — regulatory uncertainty and focus on wrong areas being amongst them. However, as regulatory clarity emerges and if tokenizers focus on the right areas, then growth will come.”

The report identified tokenized private credit as a significant early achievement, highlighting it as evidence that blockchain can create real value by enhancing liquidity for assets that are typically challenging to trade.

It contended that this rationale could also apply to private equity and specialized commodities markets, where institutional investors are actively pursuing improved efficiency and transparency.

Regulatory patchwork persists

Despite the positive outlook, Standard Chartered warned that regulatory fragmentation continues to pose a challenge. Regions such as Singapore, Switzerland, the EU, and Jersey have established clearer guidelines for RWAs, while others remain behind, and know-your-customer (KYC) requirements continue to hinder cross-border adoption.

The bank’s research advocated for tokenization strategies that prioritize “areas of differentiation from off-chain assets” instead of merely replicating successful models from traditional markets. This approach could enable platforms and issuers to gain momentum even amid uncertain regulatory conditions.

The report emphasized that tokenized private credit, structured debt, and corporate bonds have started to grow steadily, with forecasts indicating a significant increase beginning in 2025.

It also suggested that if industry participants apply insights from private credit and establish strong compliance frameworks, non-stablecoin RWAs could become the next significant wave in the digital asset landscape.

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